Listed on the National Register of Historic Places, the property consists of two separate structures: the six-story Forth Worth Club Building, constructed in 1915, and the two-story Winfree Building, built in 1890. The two buildings were joined in 1937 through construction over a service alley.
According to Matt Mildren, a partner at Vintage Capital, the deal was an off-market transaction. "I approached the owners and asked if they'd be interested in entertaining an offer," he recalls. "It turns out they were." Mildren made the initial offer in April, but the crisis in the capital markets delayed consummation of the deal. He says he finally found financing through Southwest Bank, a Fort Worth-based institution with seven branches.
The hotel is being purchased through Vintage Capital's first fund, which was launched two years ago. Now nearing completion, the fund has accumulated an $85-million portfolio of office, retail and industrial properties primarily in the Fort Worth market. The Ashton is the fund's first hotel purchase. Mildren tells GlobeSt.com, the company plans to launch a second fund early next year. "We're shooting for $100 million," he says, adding the intention is to make the fund as diversified as the first one.
The Gandys have owned the property since the late 1990s. They spent $7.8 million to acquire the buildings and convert them into a boutique hotel, opening it in 2001. Mildren, who admits a personal appreciation for old buildings played a role in the purchase, calls the location in the city's Sundance Square a major plus for marketing the property. The historic 20-block area has become a popular residential, dining, shopping and entertainment district.
Mildren reports occupancy at the hotel has been running about 71%. Rates from $265 to $360 a night for single rooms and $360 to $780 a night for suites. He says Vintage has no plans to raise rates but hopes to raise the occupancy level through intensified marketing and a basic refurbishing. The refurbishing, which will be done one floor at a time throughout January, will include new drapes, carpets, bedding and plasma TVs in all the guest rooms.
Vintage Capital has brought in the Coury Collection, a Tulsa, OK-based hospitality development and management company, to handle the hotel's day-to-day operations. Coury Collection president Paul M. Coury will also invest in the Vintage Capital fund.
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